In the wake of the Corona crisis, short-time working is increasingly being introduced in Germany. Many employees now receive the so-called short-time allowance. Short-time work and the associated short-time work allowance may have an impact on pensions, taxes and insurance. You can find out exactly what these effects look like in the following expert article or directly in the video ( Click here for Germany’s largest insurance YouTube channel ).
Short-time work and statutory pension
Many people are particularly concerned about the effects on pension entitlements from the statutory pension insurance. But the all-clear can be given here. Even periods of short-time work are viewed as normal employment times. That means, despite short-time work benefits, you acquire pension entitlements, just like before short-time work. The protection of the statutory pension insurance is therefore fully retained even in short-time work. However, the amount of the pension entitlement may differ. Because these are then based on your actual working hours.
Short-time work benefits and unemployment insurance
The procedure here is similar to that of statutory pension insurance: contributions continue to flow into unemployment insurance and further benefit entitlements are thus acquired. The unemployment insurance contributions are calculated using the same procedure as the pension contributions.
Short-time work allowance and statutory health insurance / long-term care insurance
Here, too, there are no disadvantages for you during short-time work. For those with statutory health insurance, insurance coverage continues to exist as normal, even while receiving short-time allowance. This is also the case if work should be completely suspended during short-time work and no wages at all and you, as an employee, would not pay any insurance contributions.
Continued payment of wages and sick pay during short-time work allowance
If you fall ill during short-time work, you are entitled to continued payment of the short-term wage for six weeks and, in addition, to continued short-time work allowance. You will then receive sick pay from the health insurance company (for those with statutory health insurance). Sick pay is calculated as the benefit would have been calculated before short-time work.
Private health insurance in short-time work
If you have private health insurance, you will remain so even during short-time work. Nothing changes here for you. Even if your income would fall so much in short-time work that you would have to take out statutory health insurance again, you will continue to stay in the private health insurance . Privately insured remains privately insured. You can remember this as a principle during short-time work for privately insured persons.
Occupational disability insurance during short-time work
Yours Occupational disability insurance you should let it run normally even during short-time work. It is one of the few really existential insurance policies that you should never pause or cancel. In addition, the reduced working hours do not trigger a benefit in the disability insurance. This should actually be clear (performance triggers are illness, accident or more than age-related loss of strength and if this means that the last activity cannot be carried out more than 50% for at least an estimated 6 months).
Contributions to private pension insurance
Also your posts too private pension insurance or life insurance should continue to pay as normal. Even a short interruption has a very strong effect later on (compound interest effect). But if you really have financial difficulties, then by all means seek communication with the insurer. Pension and life insurance contributions can be deferred so that you suspend contributions first and then pay them later. Simply terminating pension insurance because of short-time work benefits is usually the worst option for you as the policyholder.
Short-time work allowance and taxes
There is good news here. Short-time work allowance is tax-free. Like other wage replacement benefits such as parental allowance. However, it is subject to the so-called progression proviso (§32b Income Tax Act). That means that it increases the tax rate on all taxable income.
Note: Due to the progression proviso, it is possible that you have to pay additional taxes. It might make sense to build up a small buffer and set aside € 50-100 a month.